§ Dr. KumarTo ask the Secretary of State for Transport, Local Government and the Regions what plans there are to(a) abolish VAT on the renovation and conversion of existing houses and (b) to introduce VAT on building new houses. [48590]
§ Ms KeebleBudget 2001 reduced the rate of VAT to 5 per cent. on the renovation of dwellings empty for three years or longer and on residential conversions that result in a change in the number of dwellings. Budget 2001 also introduced an adjustment to the zero rate of VAT to provide relief for the sale of renovated houses that have been empty for 10 years or more.
Any further changes to VAT policy are a matter for my right hon. Friend the Chancellor.